Question 1184251: A Php 50,000 loan is payable in 3 years. To repay the loan, the debtor must pay an amount with an interest rate of 60% compounded semi-annually. How much should he pay every 6 months?
Answer by Theo(13342)   (Show Source):
You can put this solution on YOUR website! present value = 50,000.
number of semi-annual periods is 3 * 2 = 6.
interest rate per semi-annual period is 60% / 2 = 30%.
future value = 0
payment is made at the end of each semi-annual time period.
the amount of the payment at the end of each 6 month period is equal to 18,919.71.
inputs are everything except pmt.
output is pmt.
do not include commas when making your entries.
calculator can be found at https://arachnoid.com/finance/index.html
the numbers are good.
if the payment is at the end of each semi-annual period, then the figure i gave you is correct.
if the payment is at the beginning of each semi-annual period, then the payment required should be 30% less, which is equal to 14,553.63.
the calculator shows the answer as negative, but the answer really is positive.
it's a cash flow convention.
money coming in to you is positive and money going out from you is negative.
did you enter it as negative or positve?
the calculator rounds the answer to the nearest penny.
was that one of their requirements?
if not, then what?
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